It has been a horrid day for shareholders of solar energy component maker Enphase Energy Inc (NASDAQ:ENPH) and energy firm Gastar Exploration Inc (NYSEMKT:GST), as shares of both companies fell sharply today, reaching record lows. Let’s take a look and see what analysts have to say about ENPH and GST.
Enphase Energy Inc
Enphase Energy shares are falling nearly 16% after the company released its fourth-quarter earnings report that failed to live up to Wall Street’s expectations. In reaction, Oppenheimer analyst Colin Rusch downgraded the stock from Outperform to Perform, without providing a price target.
Rusch commented, “As ENPH works toward its Gen 5 product introduction, it is clear the company’s share loss is putting increasing pressure on the platform. Management notes its use of price as a lever to drive sales and its intent to continue to do so after seeing some regain of share in 4Q:15 and first part of 1Q:16. We would expect this dynamic to create increased working capital challenges despite its revolving line of credit still being intact. With ongoing losses and a commitment to maintaining share, we are stepping to the sidelines as price pressure has the potential to create difficulties with the balance sheet. We remain bullish on the technology potential and would look for margin stabilization before upgrading.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Colin Rusch has a yearly average return of 10.2% and a 48% success rate. Rusch has a -23.1% average return when recommending ENPH, and is ranked #269 out of 3664 analysts.
Gastar Exploration Inc
FBR analyst Chad Mabry reiterated an Outperform rating on shares of Gastar Exploration, while reducing the price target to $1.50 (from $1.75), following the news that company is selling most of its Appalachian Basin assets to privately-held Tug Hill for $80 million.
Mabry commented, “Gastar Exploration’s transition to a Mid-Continent pure play is nearly complete after it found a buyer for its Appalachian assets. While the price tag was at the low end of expectations, the transaction nonetheless enables debt paydown and a focus on its STACK play where its first well in the Meramec continues to outperform and its second is drilling. We are also encouraged by a positive 4Q15 operational update and 1Q16 guidance. We reiterate our Outperform rating as GST’s industry-leading exposure to the STACK should drive shares higher this year.”
According to TipRanks.com, analyst Chad Mabry has a yearly average return of -42% and a 19% success rate. Mabry has a -17% average return when recommending GST, and is ranked #3657 out of 3664 analysts.
Out of the 4 analysts polled by TipRanks (in the past 3 months), 3 rate Gastar stock a Buy, while 1 rates the stock a Hold. With a return potential of 162.5%, the stock’s consensus target price stands at $1.68